Cathie Wood, the visionary founder and Chief Executive Officer (CEO) of ARK Investment Management, has consistently demonstrated her ability to identify disruptive technologies and high-growth companies.
The market is witnessing significant developments in key areas, with many companies making remarkable breakthroughs. Cathie Wood’s keen eye for spotting these trends and her conviction in backing innovative companies have made for highly sought-after stock picks.
We will delve into the three stocks that stand out from Cathie Wood’s portfolio this month. These companies have demonstrated strong fundamentals. Also, they are great buys on their own regardless of Cathie Wood’s backing.
Coinbase (COIN)
Coinbase (NASDAQ:COIN) is a major cryptocurrency exchange, riding on the increasing adoption of digital currencies.
Cathie Wood’s ARK Invest holds a significant position in Coinbase. Across various ARK ETFs, the total number of Coinbase shares held is substantial. Specifically, the ARK Innovation ETF (NYSEARCA:ARKK) holds approximately 5.94 million shares, while ARK Next Generation Internet ETF (NYSEARCA:ARKW) and ARK Fintech Innovation ETF (NYSEARCA:ARKF) hold 2.58 million and 1.88 million shares, respectively.
Cathie Wood has made bold predictions about Bitcoin’s future. She anticipates that Bitcoin could reach between $1 million and $1.5 million by 2030. This projection is based on increasing institutional adoption, the potential of Bitcoin as a hedge against inflation and other tailwinds.
With COIN being the leading exchange in the U.S, and recent analyst estimates, COIN is one of the top Cathie Wood stocks for investors to watch. This is especially if they seek high-risk, high-reward situations.
PagerDuty (PD)
PagerDuty (NYSE:PD) offers cloud solutions with a focus on expanding its generative AI portfolio and customer base.
Also, Cathie Wood’s ARK Invest holds approximately 7.81% of PagerDuty’s shares. Its various ETFs collectively hold about 8.71 million shares of PagerDuty.
I am also bullish on PD. Generative artificial intelligence (AI) tools are being closely integrated into our everyday workflows and increasingly creative use cases seen in enterprise settings. Also, its recent quarterly results were optimistic for the future.
PD reported mixed Q1 fiscal 2025 results, with revenue growing 7.7% year-over-year (YOY) to $111.2 million, marginally missing estimates. However, the company delivered adjusted EPS of 17 cents, surpassing the consensus estimate of 13 cents, marking the seventh consecutive quarter of positive adjusted earnings.
PagerDuty’s customer base remained stable, with customers generating over $100,000 in annual recurring revenue increasing by 6% to 811. Also, the company announced a $100 million share repurchase program.
Roku (ROKU)
Roku (NASDAQ:ROKU) provides streaming devices and services, maintaining a strong presence in the streaming market.
In addition, Roku leads the smart TV operating system market in North America, with 81.6 million active accounts and 30.8 billion hours of content streamed last quarter. The cord-cutting trend and increasing digital ad spending is central to my thesis.
ARK Invest’s various ETFs collectively hold about 7.24% of Roku’s shares, amounting to approximately 8.65 million shares. This makes Roku one of the significant holdings in ARK’s portfolio.
In Q1 2024, ROKU reported revenue of $881.50 million, up 19% YOY, surpassing analyst expectations of $843.54 million. The company reported a loss of $0.35 per share, which was better than the expected loss of 64 cents per share. Adjusted earnings came in at $40.9 million, marking the third consecutive quarter of non-GAAP quarterly profits.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
